An effective value proposition is essential in any relationship. Whether it is between a recruiter and a candidate, a client and the recruiter, or the search firm leadership/ownership and the recruiters at the firm a fair and solid value proposition is what is necessary for a long term mutually beneficial relationship. If a candidate is extremely cooperative and willing to work anywhere for almost anything but has been fired three times consecutively for incompetence, it is doubtful a quality recruiter would work with this candidate. If a recruiter never returns phone calls or emails from a client, it is doubtful that the client will work with that recruiter very long! Every transaction has a value proposition associated with it. If you loved a movie, then you had a good proposition, and if you did not, then most likely you felt that the value of the experience was not worth what you paid and therefore a poor value proposition. Every employer deals with this every time one of us comes calling on their team members and attempts to woo their best and brightest away. Those that have a solid value proposition don’t worry, and those that don’t attempt to build electronic and procedure “walls” to keep recruiters away.
A great question for every search firm leader/owner is what is that value that we provide? In many situations the answer is that the owner “gave the person a chance” and/or “taught them the business.” This loyalty is understandable and well deserved but for how long? How many placements are sufficient payback for the opportunity and initial training? How much is rent, a long distance phone bill at 2-3 cents per minute, a computer, desk, internet connection, website, fica, and some benefits worth? Do you think most successful recruiters think what percentage they are getting or rather what percentage they are giving up and what the VALUE PROPOSITION is for what they are giving up? There are several areas where a search firm can create value and many of them have been written about in previous articles. Ensuring a solid career path where recruiters can build whatever it is within the walls of the firm instead of outside the firm is critical. Having robust technology and a solid brand with an integral marketing communications strategy is essential. Team models, capable operational professionals, and financial rewards including but not limited to equity are all parts of the value proposition. Culture is probably one of the most underrated but important aspects of a solid value proposition. All of these components and many more form the value proposition to a recruiter by the firm ownership and leadership. If a recruiter fails to perform and contribute in all areas at an acceptable level, he or she will be fired just as if a recruiter fails to receive an acceptable value proposition in return he or she will ultimately leave the company on good terms or perhaps even bad.
In my opinion, the number one value proposition a leader can give to a recruiter is the ability for the recruiter to perpetually grow in all dimensions. This means professionally as well as personally and financially as well as mentally. In nature plants either grow or they decompose. They do not stay the same. When they are not properly nourished with the right environment they leave that environment. In a search firm the nourishment is supplied by group and one on one development. Training is the broad term that encompasses this, but a better one is learning. What is being done at your firm to learn every week? If you are a firm of one, then who are you growing? What book are you reading to grow? What webinars, DVDs, conferences, coaches, training programs, etc. are you signed up for in the next 30 days? If the answer is less time than you plan on watching TV, then you are saying that your learning is less important than the shows you will watch. Now don’t get me wrong, Lost returns soon, and I love House, Boston Legal, Southpark, Californication and Family guy just as much as I do Meet the Press, Face the Nation, and the Daily Show, but I also know that if I am not growing and helping others to do that then I am at risk to go backwards.
Now I realize that I am biased because of my involvement with Next Level Recruiting Training but please know that the trainer business emerged from a genuine belief in training and learning. It is not a coincidence that we have an intense training program for every new associate followed by over 170 MANDATORY HOURS of training in the first year alone. Veterans who “know it all” have a mere 50+ each year. Many spend even more time doing this than what is mandated. When I hear that times are tough and we can’t afford to have people take time away from their “desks” or we can’t afford training, I must admit it sounds like the company who because of low sales decides to eliminate its sales department!
Create a 2009 learning plan for yourself and everyone at your organization. It should cover all dimensions of one’s life and have some elements that are quarterly, monthly, weekly, and daily. Financial planning should be as important as daily recruiting planning. Closing, communicating, listening, questioning, marketing, time and attention management, negotiating, presenting, and qualifying are but a few of the areas of potential growth, learning and training.
Learning should be continuous and constant, and never forget that repetition is the mother of all learning! There is someone here that billed 500k+ as a SOLO in her rookie year and over 800k in her second year as a solo. There is another person that did not crack 100k in year one and barely over that in year two. No two people are the same which is why learning and training must be situational and based on the level and competencies of the student.
Creating a solid value proposition is what every leader must do. There are many ways to do this but learning, ironically, is usually the most personal, valued, and least expensive. The fact that you are reading this means that you value training. There are many in this business that never had any formal training and do nothing in this area. These are usually part of the big statistical number of search firms and recruiters that go under in tough times. Most of them will be gone within six months. Many recruiters use tough times as the reason to go “on their own.” The billings are down so I can get a larger percentage of a lower billing amount is the mindset. Instead, what about the mindset I can grow and become a better recruiter by working harder and gaining market share so that when the market turns I will explode my production and opportunities within the organization.
Ryan Ross is a partner at Kaye/Bassman and leads a team that did 1.6m+ in a calendar year. He is a student of the business, and below is his tip from the trenches.
The precursor to successfully delivering your service charge is to make sure you did a thorough job of explaining your search process and the value you bring before getting to the fee. Too often, recruiters allow the client to control the direction of the call. When asked the “How do you work?” question, they immediately go into fee negotiating. I have had the most success in securing an engaged search by clearly explaining my process prior to discussing the fee. Once I’ve walked through my process I simply state my fee without hesitation. The goal is to convey this in such a way that it’s just how you work. If you have ever visited a Saturn dealership, you know that unlike almost every other car dealer in the United States, they don’t haggle. They make it clear from the beginning that their pricing is set and there is no option for negotiation. Now, I’m not suggesting we’ll get there, but if you have clearly articulated the value you bring prior to discussing your fee, the client will have a harder time pushing back. If you deliver your fee with clarity and no hesitation, you’ll have much more success in getting what you want. It should sound something like this, “Mr. Client based on what we discussed about your needs, my recommendation is an engaged search. The fee is 30% of the first year’s guaranteed compensation and will be paid in two payments; one third up front with the balance paid upon completion of our search. What questions do you have about our process?” Remember, the fee is just a continuation of the overall search process conversation. Treat it as such, and I’ll bet you’ll be pleased with the results!
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